Aberdeen Asset Management has reduced the price dilution for investors exiting its UK property fund following a slowing of outflows and the disposal of assets.

Earlier this month Aberdeen was among leading fund managers to impose restrictions and price adjustments on their open-ended property funds, in Aberdeen’s case a 17 per cent dilution for investors attempting to sell out of the £3.2billion fund.

It also suspended trading in the fund for a week to allow reconsideration by investors who had placed orders the day before the change.

The suspension was lifted last week and the price cut has now been reduced, resulting in a 7.5 per cent uplift on the dealing price, Aberdeen said yesterday.

However, a seven per cent ‘fair value adjustment’ to the price of the underlying portfolio at the time of the original suspension remains in place.

Martin Gilbert, chief executive, said the change reflected an improving outlook for the funds.

“We have been able to reduce the temporary dilution adjustment applied to the funds significantly, reflecting the reduced levels of redemptions the funds have seen and the rebuilding of the funds’ cash levels,” he said.

“Our hope is that trading in the funds continues to revert to more normal levels. This should allow us, in time, to remove the dilution adjustment altogether.”

Among the managers to suspend trading in their funds,, amid uncertainty for the asset class following last month’s EU referendum vote, were Standard Life Investments, Prudential's M&G Investments, Aviva Investors and Threadneedle.

Aberdeen shares meanwhile are up 30 per cent since June 27, closing at 320.7p.